JUDGMENT
On 22nd February 2001, the respondent filed a suit against the appellants seeking to recover a sum of Kshs.23,141,488.70 plus costs and interest at the rate of 4% per month with effect from 31st January 2001 until payment in full.
The suit was premised on a term loan and bills discounting facilities that were granted to the 1st appellant by the respondent. The facilities were guaranteed by the 2nd and 3rd appellants. The said facilities were further secured by a legal charge over L.R 7741/73 Nairobi. That property was owned by the 2nd appellant.
The 1st appellant defaulted in repayment of the said facilities. With the 2nd appellant’s approval, the charged property was sold for Kshs.30,000,000. The respondent stated that after the sale of the said security the balance due on the facilities as at 31st January 2001 was Kshs.23,141,488.70, whose break down was set out in the plaint.
The 1st appellant denied that it defaulted in repayment of the facilities. It contended that there was…